Document Type : Research Article
1 Lecturer at Tourism Department, Universitas Ciputra Surabaya, Indonesia
2 Lecturer at Management Program, Petra Christian University, Indonesia
3 Lecturer at Master Management, Petra Christian University, Indonesia
4 Lecturer at Management Department, Universitas Ciputra Surabaya, Indonesia
The impact of the Covid-19 pandemic has been significantly felt by many industries, especially the hotel industry in Indonesia. Declining occupancy had been a significant blow to the industry that also has an impact on the company. Therefore, some policies are taken, such as layoff, temporarily operation suspend, or even permanent termination. Even though the Indonesian government has relaxed its social restriction policy, declining occupancy has still occurred. In other words, consumers are still not sure about the implementation of health protocols in public, including hotels. This study investigates consumer perceived risk influenced by service guarantees and service quality perception during the Covid-19 pandemic condition, retrieving research data from 312 starred-hotel consumers in East Java and Bali provinces. The results showed that service guarantees directly and significantly affect service quality perception and consumer perceived risk. However, service quality perception has a direct effect but not significant on consumer perceived risk.
- Service Guarantees, Service Quality Perception
- Customer Perceived Risk
- Hotel Industry
- COVID-19 pandemic
- Arshad, A., Zafar, M., Fatima, I., & Khan, S. (2015). The impact of perceived risk on online buying behavior. International Journal of New Technology and Research, 1(8), 13–18.
- Auener, S., Kroon, D., Wackers, E., van Dulmen, S., & Jeurissen, P. (2020). Covid-19: A window of opportunity for positive healthcare reforms. International Journal of Health Policy and Management, 9(10), 419–422. https://doi.org/10.34172/ijhpm.2020.66
- Awan, M. I., Shamim, A., & Ahn, J. (2020). Implementing ‘cleanliness is half of faith’ in re-designing tourists, experiences and salvaging the hotel industry in Malaysia during COVID-19 pandemic. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-08-2020-0229
- Bach, T. M., Silva, W. V. da, Souza, A. M., Kudlawicz-Franco, C., & Veiga, C. P. da. (2020). Online customer behavior: Perceptions regarding the types of risks incurred through online purchases. Palgrave Communications. https://doi.org/10.1057/s41599-020-0389-4
- Bertea, P. E. (2010). Scales for Measuring Perceived Risk in E-Commerce - Testing Influences on Reliability. Management & Marketing, VIII(1s), 81–92.
- Bilotkach, V., & Rupp, N. G. (2014). Buyer subsidies in two-sided markets: Evidence from online travel agents. In Advances in Airline Economics, 4, 339–374.
- Boeije, H., & Willis, G. (2013). The cognitive interviewing reporting framework (CIRF): Towards the harmonization of cognitive testing reports. Methodology, 9(3), 87–95. https://doi.org/10.1027/1614-2241/a000075
- Boutang, J., & De Lara, M. (2016). Risk marketing. Journal of Centrum Cathedra, 9(1), 27–51. https://doi.org/10.1108/jcc-08-2016-0008
- Brouthers, L. E., Story, J. W., & Hadjimarcou, J. (2008). A signaling theory investigation of how to overcome negative country-of-origin effects. In G. D. A. Lewin A.Y., Cavusgil S.T., Hult G.T.M. (Ed.), Thought Leadership in Advancing International Business Research (pp. 134–152). Palgrave Macmillan. https://doi.org/10.1057/9780230594234
- Chawla, U., & Sengupta, K. S. (2017). Factors affecting customers’ accommodation satisfaction and service quality in the hotel industry of Rural West Bengal. LBS Journal of Management & Research, 15(1), 34. https://doi.org/10.5958/0974-1852.2017.00004.9
- Chen, W. J., & Chen, M. L. (2014). Factors affecting the hotel’s service quality: Relationship marketing and corporate image. Journal of Hospitality Marketing and Management, 23(1), 77–96. https://doi.org/10.1080/19368623.2013.766581
- Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67.
- Crisafulli, B., & Singh, J. (2016). Service guarantee as a recovery strategy: The impact of guarantee terms on perceived justice and firm motives. Journal of Service Management, 27(2), 117–143. https://doi.org/10.1108/JOSM-10-2015-0309
- Dortyol, I. T., Varinli, I., & Kitapci, O. (2014). How do international tourists perceive hotel quality?: An exploratory study of service quality in Antalya tourism region. International Journal of Contemporary Hospitality Management, 26(3), 470–495. https://doi.org/10.1108/IJCHM-11-2012-0211
- EKONID. (2021). COVID-19 developments in Indonesia. In Ekonid-Ahk. https://indonesien.ahk.de/en/infocenter/news/news-details/covid-19-developments-in-indonesia
- Eman, C., Pangemanan, S., & Rumokoy, F. S. (2018). Analyzing the effect of service quality and perceived risk on purchase intention in the multimart convenience store Tomohon City. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 6(4). https://doi.org/10.35794/emba.v6i4.21017
- Fabien, L. (2005). Design and implementation of a service guarantee. Journal of Services Marketing, 19(1), 33–38. https://doi.org/10.1108/08876040510579370
- Foroudi, P., H. Tabaghdehi, S. A., & Marvi, R. (2021). The gloom of the COVID-19 shock in the hospitality industry: A study of consumer risk perception and adaptive belief in the dark cloud of a pandemic. International Journal of Hospitality Management, 92. https://doi.org/10.1016/j.ijhm.2020.102717
- Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). In Sage.
- Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advances in International Marketing, 20, 277–319. https://doi.org/10.1108/S1474-7979(2009)0000020014
- Hocutt, M. A., & Bowers, M. R. (2005). The impact of service guarantees on consumer responses in the hotel industry. Journal of Hospitality and Leisure Marketing, 13(1), 5–23. https://doi.org/10.1300/J150v13n01_02
- Hogreve, J., & Gremler, D. D. (2009). Twenty years of service guarantee research: A synthesis. Journal of Service Research, 11(4), 322–343. https://doi.org/10.1177/1094670508329225
- JawaPos.com. (2021, January 6). Orang takut menginap di hotel dan berkunjung ke mal selama pandemi. JawaPos.Com. https://www.jawapos.com/ekonomi/bisnis/06/01/2021/orang-takut-menginap-di-hotel-dan-berkunjung-ke-mal-selama-pandemi/
- Jin, L., Huang, Y., & He, Y. (2016). When does a service guarantee work? The roles of the popularity of service guarantees and firm reputation. Tourism Management, 57, 272–285. https://doi.org/10.1016/j.tourman.2016.06.008
- Johnson, M. S., Sivadas, E., & Garbarino, E. (2008). Customer satisfaction, perceived risk and affective commitment: An investigation of directions of influence. Journal of Services Marketing, 22(5), 353–362. https://doi.org/10.1108/08876040810889120
- Keh, H. T., & Sun, J. (2008). The complexities of perceived risk in cross-cultural services marketing. Journal of International Marketing, 16(1), 120–146. https://doi.org/10.1509/jimk.16.1.120
- Kennett-Hensel, P. A., Min, K. S., & Totten, J. W. (2012). The impact of health-care service guarantees on consumer decision-making: An experimental investigation. Health Marketing Quarterly, 29(2), 146–162. https://doi.org/10.1080/07359683.2012.678258
- Kumar, V., & Dange, U. (2014). A study on perceived risk in online shopping of youth in Pune: A factor analysis. SSRN Electronic Journal, 8(8). https://doi.org/10.2139/ssrn.2518293
- Lainamngern, S., & Sawmong, S. (2019). How customer relationship management, perceived risk, perceived service quality, and passenger trust affect a full-service airline’s passenger satisfaction. Journal of Business & Retail Management Research, 13(03). https://doi.org/10.24052/jbrmr/v13is03/art-15
- Lee, C. C., & Chen, C. J. (2011). The reaction of elderly Asian tourists to avian influenza and SARS. Tourism Management, 32(6), 1421–1422. https://doi.org/10.1016/j.tourman.2010.12.009
- Liat, C. B., Mansori, S., Chuan, G. C., & Imrie, B. C. (2017). Hotel service recovery and service quality: Influences of corporate image and generational differences in the relationship between customer satisfaction and loyalty. Journal of Global Marketing, 30(1), 42–51. https://doi.org/10.1080/08911762.2016.1262932
- Malik, S. U. (2012). Customer satisfaction, perceived service quality and mediating role of perceived value. International Journal of Marketing Studies, 4(1). https://doi.org/10.5539/ijms.v4n1p68
- Mavlanova, T., Benbunan-Fich, R., & Koufaris, M. (2012). Signaling theory and information asymmetry in online commerce. Information and Management, 49(5), 240–247. https://doi.org/10.1016/j.im.2012.05.004
- Maziriri, E. T., & Chuchu, T. (2017). The conception of consumer perceived risk towards online purchase of apparel and an idiosyncratic scrutiny of perceived social risk: A review of literature. International Review of Management and Marketing, 7(3), 257–265. http:www.econjournals.com
- McCollough, M. A. (2010). Service guarantees: A review and explanation of their continued rarity. Academy of Marketing Studies Journal, 14(2), 27–54.
- Mehta, S., Saxena, T., & Purohit, N. (2020). The new consumer behaviour paradigm amid COVID-19: Permanent or transient? Journal of Health Management, 22(2), 291–301. https://doi.org/10.1177/0972063420940834
- Mmutle, T., & Shonhe, L. (2017). Customers’ perception of service quality and its impact on reputation in the hospitality industry. African Journal of Hospitality, Tourism and Leisure, 6(3).
- Parmigiani, G., Inoue, L. Y. T., & Lopes, H. F. (2010). Decision theory: Principles and approaches. In Decision Theory: Principles and Approaches. https://doi.org/10.1002/9780470746684
- Pentz, C. D., du Preez, R., & Swiegers, L. (2020). To bu(Y) or not to bu(Y): Perceived risk barriers to online shopping among South African generation Y consumers. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1827813
- Rieger, M. O., Wang, M., & Hens, T. (2017). Estimating cumulative prospect theory parameters from an international survey. Theory and Decision, 82(4), 567–596. https://doi.org/10.1007/s11238-016-9582-8
- Shahril, A. M., Aziz, Y. A., Othman, M., & Bojei, J. (2013). The relationship between service guarantees, empowerment, employee satisfaction and service quality in four and five star hotels in Malaysia. Journal of Economics, Business and Management, 90–93. https://doi.org/10.7763/joebm.2013.v1.21
- Shin, H., & Kang, J. (2020). Reducing perceived health risk to attract hotel customers in the COVID-19 pandemic era: Focused on technology innovation for social distancing and cleanliness. International Journal of Hospitality Management, 91. https://doi.org/10.1016/j.ijhm.2020.102664
- Sun, J. (2014). How risky are services? An empirical investigation on the antecedents and consequences of perceived risk for hotel service. International Journal of Hospitality Management, 37, 171–179. https://doi.org/10.1016/j.ijhm.2013.11.008
- Tarigan, Z.J.H., Basuki, R. and Siagian, H. (2020). The impact of information technology quality on electronic customer satisfaction in movie industry. International Journal of Data and Network Science, 4(3), 263-270, DOI: 10.5267/j.ijdns.2020.8.001
- The Jakarta Post. (2020a, March 30). COVID-19 impacts across Indonesia’s business sectors: A recap. The Jakarta Post. https://www.thejakartapost.com/news/2020/03/30/covid-19-impacts-across-indonesias-business-sectors-a-recap.html
- The Jakarta Post. (2020b, April 6). Tourism will take at least a year to recover from COVID-19 outbreak: Economists. The Jakarta Post. https://www.thejakartapost.com/news/2020/04/06/tourism-will-take-at-least-a-year-to-recover-from-covid-19-outbreak-economists.html
- Tsao, H. Y., Berthon, P., Pitt, L. F., & Parent, M. (2011). Brand signal quality of products in an asymmetric online information environment: An experimental study. Journal of Consumer Behaviour, 10(4), 169–178. https://doi.org/10.1002/cb.327
- van Vaerenbergh, Y., de Keyser, A., & Larivière, B. (2014). Customer intentions to invoke service guarantees: Do excellence in service recovery, type of guarantee and cultural orientation matter? Managing Service Quality, 24(1), 45–62. https://doi.org/10.1108/MSQ-06-2013-0115
- Wirtz, J., Ng, I. C. L., & Sheang, L. K. (2015). How to reduce consumer cheating on service guarantees? Results from two experimental studies (pp. 198–203). https://doi.org/10.1007/978-3-319-17356-6_62
- Wu, C. H. J., Liao, H. C., Hung, K. P., & Ho, Y. H. (2012). Service guarantees in the hotel industry: Their effects on consumer risk and service quality perceptions. International Journal of Hospitality Management, 31(3), 757–763. https://doi.org/10.1016/j.ijhm.2011.09.012
- Yarimoglu, E. K. (2014). A review on dimensions of service quality models. Journal of Marketing Management, 2(2), 79–93.